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TEDPIX Ends in Red

The TSE’s benchmark failed to get back on track and retreated again at Tuesday close, with all indices settling in red territory.
According to TSE data, the TEDPIX slipped 188.1 points or 0.28 percent to 66,828.6. The first market index was down 153.2 points or 0.31 percent to finish at 48,925.4. The second market index tumbled 271.9 points or 0.2 percent to stand at 133,419.1. The free float index pulled out 189.1 points or 0.24 percent to 77,509.1. The industry index plummeted 154.5 points or 0.28 percent to 54,751.3.
Up to 439 million shares changed hands in a lousy trading day, valued at 1.03 trillion rials, to underline that investors are not willing to get rid of shares that are below their intrinsic value.
Islamic Republic of Iran Shipping Lines with 20.52 points recorded the highest positive contribution to the TEDPIX. Tose’e Melli Investment Company and Transfo Company with close to 17 and 9 points followed the IRISL, and took the second and third place respectively.
Petrochemicals weighed on the benchmark on Tuesday trading with the Parsian Oil and Gas Development Company on top of the market laggards. Telecommunication Company of Iran along with Tamin Petroleum & Petrochemical Investment Company, with almost 26 and 20 points stood after the POGDC.
Global and local economic slowdown is also considered another contributing factor to the market uptrend within the past few days.

7.17% Rise in One Month
Stocks dramatically swung between gain and loss in the month that ended April 20, with the Tehran Stock Exchange (TSE)’s overall index ascending 7.17 percent compare to the prior trading month. This as investors scrambled to digest the latest developments regarding the equity market’s most crucial systematic risks.
Investors flocked to the equity market with the aim of hedging their bet on undervalued shares, after Iran and the P5+1 clinched a framework nuclear deal on April 2; however, later on, dissimilar interpretations of the deal by both sides spurred concern among investors and changed the TSE’s sentiment.
According to TSE public relations, the TEDPIX soared 4,485 points or 7.17 percent and settled in 67,017 over the one-month period. The first market index rose 3,761 points to end at 49,078. The second market index also climbed 5,851 points to stand at 133,692.
Moreover, close to 27 billion shares changed hands, valued at 4.59 trillion rials, to post 41 and 4.6 percent increase. The transportation, warehousing, and telecommunication sectors with up to 42.69 percent, oil and petrochemicals with 22.13 percent, engineering services with 13.57 percent, and base metals with 10.38 percent outperformed.
The enthusiasm for undervalued shares enticed the veteran investors to shore up their portfolios, and convinced new investors to pour their cash into the stock market, which was accompanied by almost 12 percent surge by April 7 at the TSE, before hasty offering of Initial Public Offerings (IPO), uncertainty due to the comprehensive nuclear deal, along with skeptical investors’ behavior trimmed earlier gains to around 7.17 percent